PATERSON RESOURCES LTD — Interim / Quarterly Report 2012

Oct 28, 2012

29 October 2012

Company"Announcements"Office Australian"Securities"Exchange 20"Bridge"Street SYDNEY"NSW"2000

Quarterly)Report)for)quarter)ended 30th September)2012.

CORPORATE:

On"7th August 2012, Iron"Mountain"Mining" Ltd (IRM) launched"a takeover" for"United"Orogen" Limited to"issue"1"Iron"Mountain"Share"for"every"4"UOG"Ltd shares. The"IRM"takeover"bid"closed" on"3"October"2012.""IRM"now"holds"79.12%"of"the"total"shares"in"UOG.

MINERAL)EXPLORATION)WESTERN)AUSTRALIA

Mt.)LeemingJBauxiteJE80/4243)and)E80/4439 (100%)

The" Mt" Leeming" project" is" an" opportunity" for" bauxite" with" a" significant" level" of" earlier" exploration"activity"and"scoping"data."Historical"resource"estimates"have"been"completed"prior" to"the"introduction"of"the"JORC"code. Drilling"and"pitting"carried"out"during"earlier"exploration" programmes"identified"significant"thicknesses"of"bauxite in" the"Carson"Volcanics"on" tenement" E80/4243.The"Bauxite"prospectivity"of"the"project"area"is"considered"to"be"significant"and"more" detailed" exploration" and" sampling" is" planned. UOG" is" reviewing" data" received" as" part" of" the" acquisition"in"order"to"plan"for"new"exploration"activities"on"the"new"tenements.

Cape)LondenderryJGold E80/4372)(100%)

The"Cape"Londonderry"project"covers"rock"sequences"which"are"prospective"for"both"gold"and" alumina"and"pisolitic"iron."Reconnaissance"exploration"by"earlier"explorers"has"identified"gold" and"volcanic]hosted"base"metals" mineralization.

LawleyJGold,Base)Metals)E80/4435 (100%)

The" geological" setting" is" prospective" for" both" gold" and" diamonds. Although" relatively" unexplored," work" by" others" has" identified" a" number" of" anomalous" gold" values" ranging" up" to" 5600ppb," together" with" at" least" one" diamond" occurrence." Areas" that" have" outcropping" (and" faulted)"Hart"Dolerite"will" be"the" subject" of" detailed"mapping"and" sampling" in" the" search" for" hydrothermal"alteration"and"vein"type"base"metal"mineralization.

VansittartJGold,Base)Metals)E80/4434)(100%)

The"Vansittart"Prospect"is"believed"to"be"prospective"for"gold"hosted"by"King"Leopold"Sandstone" and"possibly"base"metals"in"the"Hart"Dolerite,"where"hydrothermal"veins"elsewhere"in"that"rock" sequence" reportedly" contain" identified," polymetallic (gold," silver" and" base" metal)" mineralization." Extensive" areas" of" the" Hart" Dolerite" surround" the" prospect" and" detailed" exploration" is" warranted" in" the" search" for" these" prospective" rock" sequences" within" the" Company's" tenement" area. Exploration" by" others" report" on" the" presence" of" microdiamond" occurrences,"within"the"postulated"gold"mineralized"corridor"that"extends"northeast]southwest," along"a"line"between"E80/4372"and"E80/4434.

Tambellup)Project)(100%)

(Tambellup"E70/4173,"Granted. Tambellup"East"E70/4174, Granted)

The two"licenses cover"approximately"395"km"²"and"are"situated"100km"north"of"Albany"and"30" km"south"of"Katanning.The"project"area"lies"within"the"Yilgarn"Craton"South"West"Terrane"with" the" Albany]Fraser" Proterozoic"Mobile" Belt" lying" to" the" south" and" is" prospective" for" gold" and" base"metals. Soil"sampling"was"carried"out"on"anomalies"in"the"western"part"of"E70/4174 and" on"E70/4173 in"the"March"2012"Quarter.

On"E70/4174"UOG"is assessing"an"extension to"the"northern"anomaly".The"highest"result"was" 3"ppb Au and"additional"closer"spaced"sampling"will"help"define"structures"parallel"to"the"main" northerly"anomaly.

On"E70/4173,"anomalous"results"of"up"to"13"ppb"Au"have"been"obtained"on"the"interpreted" position"of"the"Darkan"Fault"in"the"north"of"the"tenement."Other"soil"samples"in"the"vicinity" have"values"of"6.4"And 3"ppb Au". Planning"for"follow"up"soil"sampling"around"these"anomalous" results and"along"the"interpreted"trends"of"the"Darkan"and"Kojunup"structures was"carried"out" during"the"quarter.

Redmond)Project)(100%)

(E70/4073; Granted"April"2"2012)

During"this"quarter, UOG"acquired"RAAF"photography"dating"to"1943.This"photographic"record" was"superimposed"on"reported"locations"of"workings"and"soil"sampling"carried"out"in"1997. This"has"assisted"in"the"search"for"the"locations"of"shafts"and"workings that"have"been"recorded" as"having"had"a"production"of"gold.

New"Government"aeromagnetic"imagery" released recently has"also"been"used" to"plan" further" exploration"and"sampling. The"new"imagery"shows"moderately"strong"magnetic"anomalies"to" the"south"of"the"Hay]Redmond"road.

Victoria)Desert)Project)(100%)

(Victoria"Desert"E39/1528,"Victoria"Desert"North"E39/1594)".

The" Project" area" is" situated" 250km" ENE" of" Kalgoorlie" and" covers" an" area" of" approximately" 185km²"and"is"prospective"for"gold,"base"metals"and"uranium."The"area"is"covered"by"undulating" WNW" trending" sparsely"vegetated" static" sand"dunes"with"an"average"height of"10]15"metres." This"continuous" sand"cover"obscures" the"bedrock"mineralization"and" the" suitability"of" surface" sampling"techniques"is"often"brought"into"question."

Previous explorers" have" found" at" least" six" gold" anomalies" and" two" areas" with" uranium" anomalies."There is"potential"for"sedimentary"hosted"gold,"base metals"and"uranium"deposits."It has"been"possible"to"define"lineaments"in"lake"sediments,"as they"are"of"a"different"colour"due" to"the"influx"of"oxidized"brines.

The" Victoria" Desert" North" project" is" underlain" by" narrow" belts" of" north" west" trending" greenstone" of" the" Narnoo" Greenstone" Belt" within" granites" interpreted" from" aeromagnetic" surveys."Mafic"and"ultramafic"lithologies"are"present"in"a"structural"setting"of"north"and"north" west" trending"brittle deformed" faults".The"area"is" therefore"prospective" for"gold, base"metals and"uranium."During"this"quarter UOG"continued"further"desktop"studies"for"target"generation" and"planning""for"a"new""geochemical"sampling"programme"was"completed.

Horseshoe) South)Project)(100%)

(Horseshoe"South"E52/2569)

UOG's" exploration has" included" a" heliborne geophysical" survey" which" indicated" no" deep" conductors"are"present"in"this"area"negating"the"possibility"of"a"deep"sulphide"deposit."This"area" is"being" targeted" for"north"west"striking"structurally"controlled"gold"mineralization due" to" the" vicinity"of"known"deposits"in"the"area"however"field"checking"and"a"data"review"of"previous"soil" geochemistry,"mapping"and"drilling"carried"out"by"Dominion"Mining"in"this"area"did"not"produce" encouraging"results."Additional"work"will"be"required"in"the"north"west"area"of"the"tenement"to" determine"the"prospectivity"of"the"project"area.

Gunnedo)Project)(100%)

(E69/2825)

The" tenement" is" located" within" the" Eucla" Basin" approximately" 450km" east" of" Kalgoorlie" and" covers"an"area"of"132km²."Previous"exploration"is"very"limited"which"includes"aeromagnetic"and" gravity"surveys"and" two"partly"government" funded" (50%)"diamond"holes"drilled" to"a"depth"of" 400m"each."The"explorers"were"targeting"possible"nickel"sulphide"mineralization within"a"north" easterly"trending"zone"of"magnetic"anomalies"coincident"with"gravity high."No"significant"nickel" mineralization was"intersected."Other"major"explorers"working"in" the"vicinity"of" the"Gunnedo" project"have"relinquished"their"holdings"and"are"now"concentrating"their"efforts"120km"further" east"along"the"major"Mundrabella"fault."

Examination"by"our"geologists"has"not revealed lithologies"that"may"host"significant"thicknesses" of" base" metals" or" gold mineralization." Radiometric measurements" on" the" core" were" not" significant."UOG"is"""reviewing"this"information.

EP 448)Canning)Basin)Oil)and)Gas)

Key Petroleum, on"behalf"of"the"EP"448"Joint"Venture, (of"which"UOG"holds"10%), are" negotiating"with"potential"farm]in"groups"to"progress"exploration"within"the"EP448"Permit"in" the"Canning"Basin."This"permit"is"located"in"the"southern"part"of"the"basin"where"other" companies"have"committed"large"exploration"programs"in"the"search"for"shale"gas"reserves.

This"part"of"the"Canning"Basin"has"rich"oil"source"rocks"of"the"Goldwyer"Formation"which"are" considered"some"of"the"richest"source"rocks"in"Western"Australia. The"West"Anketell"8,000"line" km"Aeromagnetic"Survey"was"completed"and"existing"seismic"is"being"evaluated"to"delineate carbonate"reef"type"prospects"in"the"Nita"and"structural"development"in"carbonates"of"the" Nullara"Formation"as"well"as"the Goldwyer"Formation"for"Shale"Oil/Shale"Gas"potential. RPS Energy consultants"have been"appointed by"Key"Petroleum"to undertake"Shale"Oil"Maturation Studies.

Parmesh)Vakil Exploration)Manager

The information within this report as it relates to exploration results and mineral resources was compiled by Mr. Parmesh Vakil. Mr.Vakil is a Member of the Australasian Institute of Mining and Metallurgy and is an employee of the company. Mr. Vakil has sufficient experience, which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, the JORC Code". Mr. Vakil consents to the inclusion in the report of the matters based on information in the form and context which it appears.